poppyland
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Post by poppyland on Apr 3, 2016 13:55:02 GMT
Has anyone else read this? www.orcamoney.com/blog/saving-stream-interview-2016The thing that I found interesting was when Liam Brooke said "....we are expecting to lend to loans in the region £25m. These are less risky." I'd be really interested to hear someone from Saving Stream explain why mega loans are less risky, especially if we will soon be offered them. Intuitively it would seem the opposite would be true, but perhaps I'm missing something. |
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Post by cpaken on Apr 3, 2016 14:41:18 GMT
I'd guess it's because the borrowers of these type loans are usually high profile companies (Virgin for example) with high net-worth directors behind them.
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Post by GSV3MIaC on Apr 3, 2016 17:35:09 GMT
You can afford to do an awful lot of DD and legal knot tying for 1% of £25m, compared to 1% of £250k. Heck, you can even check out the directors. OK, nobody mention Madoff or Polly Peck. 8>.
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Post by brianac on Apr 4, 2016 7:31:45 GMT
Polly Peck? You're showing your age. At least you didn't mention Emil Savundra  Brian |
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Post by GSV3MIaC on Apr 4, 2016 17:57:23 GMT
Polly Peck? You're showing your age. At least you didn't mention Emil Savundra Brian Ah but I could have done ... now Charles Ponzi ... even I can't actually say I lived through that one. 8>.
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Post by brianac on Apr 4, 2016 20:33:44 GMT
Ah but I could have done ... now Charles Ponzi ... even I can't actually say I lived through that one. 8>. Sure?  Brian
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ped
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Post by ped on Apr 7, 2016 8:36:08 GMT
Anyone know when SavingStream put in for Full FCA auth ? I understand it takes a full year to get this, then a few weeks to get the ISA Plan manger status. I know there is a backlog with the FCA but a best guess would help.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 7, 2016 8:53:45 GMT
Anyone know when SavingStream put in for Full FCA auth ? I understand it takes a full year to get this, then a few weeks to get the ISA Plan manger status. I know there is a backlog with the FCA but a best guess would help. Q1 2016 was their designated window
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ped
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Post by ped on Apr 7, 2016 9:55:20 GMT
Thanks ilmoro, lets hope so.
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Post by savingstream on Apr 7, 2016 11:01:25 GMT
We can confirm that our application was submitted within our allotted window. We are now waiting for a case officer to be designated (6 months) and then the review of our application documents before granting of our full permission (another 6 months). In the meantime, its business as usual.
We employed an agency who are very experienced at these sort of things to assist us in the application process, so we are confident of it sailing through with minimal amendments.
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ben
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Post by ben on Apr 7, 2016 11:23:00 GMT
from the questions and answers
OM: What sort of protection do you offer investors?
LB: Well our Provision Fund is intended to cover any shortfalls from loan repayments. It covers 2% of our loan book at any given time and currently stands at c£2m. The thing is, Saving Stream will never have 100% loss as we take asset security on our
lending. We will sell a borrower’s asset, which will be worth more than the loan, if they default so we can repay our lenders.
I would have thought that answer would leave SS a bit open legally as they are basically saying there that no risk exists as the asset will be worth more then the loan, which granted it may be when the loan was issued but might not be when comes to the sale
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adrianc
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Post by adrianc on Apr 7, 2016 11:41:42 GMT
from the questions and answers
OM: What sort of protection do you offer investors?
LB: Well our Provision Fund is intended to cover any shortfalls from loan repayments. It covers 2% of our loan book at any given time and currently stands at c£2m. The thing is, Saving Stream will never have 100% loss as we take asset security on our lending. We will sell a borrower’s asset, which will be worth more than the loan, if they default so we can repay our lenders.
I would have thought that answer would leave SS a bit open legally as they are basically saying there that no risk exists as the asset will be worth more then the loan, which granted it may be when the loan was issued but might not be when comes to the sale
Especially where you consider the Brummie toxic waste dump that wasn't - with a potential asset value of zero quoted in the valuation doc, leaving the entire security as a personal guarantee from the borrower.
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Post by meledor on Apr 7, 2016 12:42:15 GMT
from the questions and answers
OM: What sort of protection do you offer investors?
LB: Well our Provision Fund is intended to cover any shortfalls from loan repayments. It covers 2% of our loan book at any given time and currently stands at c£2m. The thing is, Saving Stream will never have 100% loss as we take asset security on our
lending. We will sell a borrower’s asset, which will be worth more than the loan, if they default so we can repay our lenders.
I would have thought that answer would leave SS a bit open legally as they are basically saying there that no risk exists as the asset will be worth more then the loan, which granted it may be when the loan was issued but might not be when comes to the sale
I wouldn't agree that SS are saying no risk exists. "Saving Stream will never have 100% loss " to me suggests some possibility of a less than 100% loss.
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sam i am
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Post by sam i am on Apr 7, 2016 12:48:46 GMT
I think it's the bit "We will sell a borrower’s asset, which will be worth more than the loan..." (my emphasis) that implies the lack of risk.
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ben
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Post by ben on Apr 7, 2016 12:50:14 GMT
from the questions and answers
OM: What sort of protection do you offer investors?
LB: Well our Provision Fund is intended to cover any shortfalls from loan repayments. It covers 2% of our loan book at any given time and currently stands at c£2m. The thing is, Saving Stream will never have 100% loss as we take asset security on our
lending. We will sell a borrower’s asset, which will be worth more than the loan, if they default so we can repay our lenders.
I would have thought that answer would leave SS a bit open legally as they are basically saying there that no risk exists as the asset will be worth more then the loan, which granted it may be when the loan was issued but might not be when comes to the sale
I wouldn't agree that SS are saying no risk exists. "Saving Stream will never have 100% loss " to me suggests some possibility of a less than 100% loss.
I agree with that part but its the part about them saying "We will sell a borrower’s asset, which will be worth more than the loan" that the bit that leaves them open a bit makes it sound like a fact.
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